[Calc Review] Help me analyze this deal

[AJ Smith]

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Hey y'all,

What do we think of this deal? Asking for $40,000 under the listing price. Over 200 days on the market. I'm thinking I can raise rents by improving the old appliances inside. 

From the numbers its not a GREAT deal, I'm looking for about 12% Cash on Cash Return for my first deal, but always looking for tips on how to improve the deal to make it more profitable.

Thanks!

AJ

[Justin R.]

I would agree with others that the ROI is marginal. With that being said looking only at ROI is a linear approach blinded by analytics.

What neighborhood/tenant class/school district is this? Is this an area ripe for appreciation or growth? Is there deferred maintenance? Is the economy/job market/population growing?

Best of luck!